Upstart Russian oil firm, with Goldman Sachs backing, bucks industry blues

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In the frozen taiga of eastern Siberia, where bears roam in spring after waking ...

YARAKTA OIL FIELD, Russia - In the frozen taiga of eastern Siberia, where bears roam in spring after waking from hibernation, an independent Russian oil company is bucking the domestic industry trend by rapidly ramping up its output and expanding operations.

The company told Reuters it is planning investments worth $3-$4 billion over the next three years, including developing its gas business by building four processing plants. However, its experience suggests there are still opportunities in the sector for smaller, nimbler independent players, backed up by some international know-how and a dose of good luck.

The company faces a series of obstacles that could put the brakes on its growth, including the increasing risk of being swallowed up by a larger rival, the need to invest huge amounts of money to build infrastructure in eastern Siberia and a lack of skilled staff in the remote region.Producing oil in such a hostile environment is also challenging. Winter temperatures fall as low as 58 degrees Celsius below zero, and snow drifts reach 1.5 meters in height, according to INK workers.

A global deal to curb oil production agreed by OPEC and Russia, which means INK will have to keep its output at 9 million tonnes until July, has come at an opportune time for the company, according to Dmitry Zotov, its head of oil production. The estimated value of the firm now is at least $4 billion, Yuri Rubin, INK’s chief financial officer, told Reuters. He did not detail how that estimate was calculated.

 

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BoycottGoldmanSachs

Beyond bazarre UK reporting up swing in oil production in ('where bears roam in spring' ie pristine wilderness) as a positive Probably a five year window to divest from fossil fuels Obviously gas, coal, oil production continues but UK will be aware it must end

The perfect response to questions raised concerning the problem with privatesector investment in SDGs. 'We can't solve problems by using the same kind of thinking we used when we created them.' GoldmanSachs + privatesector need to be held accountable for investments in oil.

Who are the majority shareholder's of this oil company INK? How did they get these lucrative Oil Blocks in Taiga? that said Nothing happens in Rusia without Putin's approval so what's his interest in this😲

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